CDL.WA WACC - Weighted Average Cost of Capital

The WACC of CDRL SA (CDL.WA) is 6.8%.

The Cost of Equity of CDRL SA (CDL.WA) is 9.90%.

The Cost of Debt of CDRL SA (CDL.WA) is 5.15%.

	Range	Selected
Cost of equity	8.80% - 11.00%	9.90%
Tax rate	16.00% - 21.90%	18.95%
Cost of debt	4.10% - 6.20%	5.15%
WACC	5.9% - 7.6%	6.8%

WACC

CDL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.53	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	11.00%

Tax rate	16.00%	21.90%
Debt/Equity ratio	1.22	1.22
Cost of debt	4.10%	6.20%

After-tax WACC	5.9%	7.6%


Selected WACC	6.8%

CDL.WA's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for CDL.WA:

cost_of_equity (9.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.53) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.